The accompanying table shows the demand and supply schedules for milk. Price Quantity Quantity (dollars per demanded supplied carton) (cartons per day) 1.00 200 110 1.25 175 130 1.50 150 150 1.75 125 170 2.00 100 190 a) Plot the demand and supply curves using these schedules. What are the equilibrium price and quantity; indicate on your diagram. b) Describe with the aid of your diagram, the situation in the milk market if the price were $1.75 a carton and explain how the market reaches equilibrium. c) A severe drought changes the quantity of milk supplied by 45 cartons a day at each price. Calculate and plot the new supply schedule and indicate the new equilibrium price and quantity on your diagram. d) A news report by the American Medical Association reveals that milk has significant health benefits. How does this influence the equilibrium price and quantity in part a? Show on a diagram. e) Suppose the events in parts c) and d) occur simultaneously, what is the overall effect on equilibrium price and quantity of milk from part a? Explain. P